Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), is calling for an urgent overhaul of Ghana’s Value Added Tax (VAT) system, citing its cascading effect as a key contributor to rising business costs.
Dr. Obeng stressed the need for government to prioritize VAT restructuring ahead of the 2025 national budget presentation in November.
“We have to revise and restructure VAT, the cascading effect of VAT is a major cost driver for businesses, and it’s not helping the business environment,” he said.
Dr. Obeng disclosed that Finance Minister Dr. Cassiel Ato Forson had earlier promised the formation of a task force to address VAT concerns, but no such engagement has taken place.
“The finance minister promised a task force would be formed, but we’ve had no meeting to offer our input. They must fast-track this before the November 2025 budget,” he stated.
He underscored the importance of stakeholder involvement and swift action to create a tax structure that better supports business growth and economic resilience.